question archive W White's business has a rate of turnover of 7 times
W White's business has a rate of turnover of 7 times
Subject:AccountingPrice:2.87 Bought7
W White's business has a rate of turnover of 7 times. Average stock is 12600. Trade discount
(i.e.margin Allowed) is 33 1/4%off all selling price .Expenses are 66 3/4% of gross profit
Calculate
a)cost of goods sold
b) gross profit margin
c)Turnover
d)Total expenses
e)net profit
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Answer:
Profit schedule
|
|
£ |
|
Turnover |
132,300 |
|
Cost of goods sold |
88,200 |
|
Gross profit |
44,100 |
|
Expenses |
(29,400) |
|
Net profit |
14,700 |
Turnover = Cost of Sales
Average stock
Margin = Gross Profit
Sales
7 = Cost of Sales
12,600
Cost of Sales = 88,200
